SBI ordered to pay Rs 20 lakh compensation each to sweepers; HC says bread is costlier than blood

The Orissa High Court has brought a 27-year-long legal dispute to a close by directing a public sector bank to pay a lump sum compensation of Rs 20 lakh each to two daily-wage sweepers, instead of granting them regularisation of service, reported TOI. Mayadhar Nayak and Baina Nayak had challenged a June 20, 2025 order of a single judge dismissing their plea for regularisation. The duo had been working as daily-wage sub-menial staff, or sweepers, at a government treasury branch in Bhubaneswar since 1995.

Failed settlement attempts

Before delivering its verdict on June 23 — the web copy of which was released on June 25 — the division bench comprising Justices Krishna S Dixit and Chittaranjan Dash explored the possibility of a settlement. The bank offered Rs 5 lakh each, which the workers rejected. During a personal interaction with the judges in Odia, the appellants said they would be satisfied with Rs 25 lakh each.

Court’s observations

The bench found both proposals unacceptable. Terming the bank’s offer “too frugal to be mentioned, when bread is costlier than blood", the judges noted that the workers had “given their sweat & blood" to the institution for nearly three decades. The court also considered their advancing age, limited education, and social background, observing they were unlikely to secure alternative employment “in the AI era”.

Compensation instead of regularisation

Rejecting the Rs 25 lakh demand as excessive, the court ruled that "a lump sum award of Rs 20 lakh each would do complete justice to both the sides". It added that granting regularisation at this stage would impose a higher financial burden on the bank than compensation, reported TOI.

Payment deadline and penalty

The court directed that the compensation be paid within eight weeks. Failure to comply would attract interest at 1% per month for the first month and 2% thereafter. It also noted that if delays were caused by officials, the interest burden could be recovered personally from them.

Past litigation and service history

The bench observed that the appellants had been seeking regularisation since 1999 and had earlier secured favourable orders in 2007 and 2008, directing payment of minimum wages and continuation of employment as long as work was available. However, those orders did not grant regularisation or unconditional appointment.

Scope of judgment

Clarifying its limited scope, the bench said the order was passed in the “peculiar facts and circumstances” of the case and “shall not be treated as a binding precedent or a Rule of Parity”.

A breakdown of what happened

• Orissa High Court ended a 27-year dispute involving two sweepers.
• Ordered Rs 20 lakh compensation each instead of regularisation.
• Workers employed since 1995 in Bhubaneswar treasury branch.
• Bank offered Rs 5 lakh; workers demanded Rs 25 lakh; both rejected.
• Court termed bank offer “too frugal…” and cited long service and age.
• Regularisation denied; compensation deemed appropriate.
• Payment to be made within 8 weeks with penal interest for delay.
• Claim barred under res judicata.
• Judgment limited to case-specific facts, not a precedent.